The United States has not pressured India to cut crude oil imports from Russia, Indian Oil Minister Hardeep Singh Puri said on Tuesday, as Russian cargo arrivals to the world’s third-largest crude oil importer have declined in recent weeks amid an increase in imports from the Middle East.
India’s purchases of Russian crude oil are closely linked to the pricing, discounts, and import costs of various grades, the minister said at an industry event.
“I never felt anything,” the official said in response to a question about whether the U.S. had pressured India to lower its Russian crude oil imports, as carried by Reuters.
India’s refiners are now buying higher volumes of Middle Eastern crude, whose availability has increased and whose pricing is more favorable compared to Russian grades, according to the minister.
“Whatever people say or do, ultimately it is anchored in their self-interest,” Puri said.
India saw its crude oil imports from the Middle East rebound in September to pre-war levels amid higher volumes exiting, while competition from China for Russian oil resulted in declining imports from Russia.
India’s crude oil imports from the Middle East jumped to 2.8 million barrels per day (bpd) in September, up by 32% compared to August and the highest level since February, vessel-tracking data compiled by Reuters showed last week.
Russia remained the single largest crude oil supplier to India in September, but the imports of Russian oil fell by 14% from August to 1.8 million bpd last month. The share of Russian oil in India’s oil imports dropped to 33.5% from 46.6% in August.
Deprived of Iranian oil, China has turned to Russian crude, competing directly with India for Russian oil supply and driving prices higher.
India has been reducing its imports of crude oil from Russia, as economics have always been driving Indian refiners’ purchases, and the past few weeks haven’t been different.
India is scaling back imports of Russian oil as the price of Russia’s flagship Urals grade loaded in the Baltic ports has jumped and now equals the prices of Middle Eastern crudes, whose availability has increased in recent weeks as flows through the Strait of Hormuz have rebounded.
By Tsvetana Paraskova for Oilprice.com
